In Comparing GDP Data Over a Period of Years a Difference

question 91

Multiple Choice

In comparing GDP data over a period of years a difference between GDP and real GDP may arise because

• A)Of changes in our trade deficits and surpluses.
• B)The length of the workweek has declined historically.
• C)The price level may change over time.
• D)Depreciation may be greater or smaller than gross investment.

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Definitions:

Debt-Equity Ratio

A company's financial risk measure calculated by dividing all debts by the equity held by shareholders.

Net Present Value

A calculation that represents the difference between the present value of cash inflows and the present value of cash outflows over a period of time.

Debt-to-Assets Ratio

A financial ratio indicating the percentage of a company's assets that are financed through debt.